Classys Inc: Risk Reward Update

Research evidence excerpt

Classys Inc: Risk Reward Update

UpdateM

RiskRisk RewardReward– Classys- ClassysInc (214150.KQ)Inc (214150.KQ)

RF device sales are rising but HIFU device sales are a drag; EW

PRICE TARGET W55,000 EQUAL-WEIGHT THESIS

We derive our price target (base case) from a DCF model to best capture the company's ▪Exports accounted for 67% of total sales

sustainable growth potential over the longer term. We assume a 9.3% cost of equity (beta in 2025.

1.05, risk-free rate 3.0% and risk premium 6.0%) and 4.0% terminal growth and FCF growth. ▪In 2025, existing Ultraformer franchise

Reflecting strong growth outlooks for skin tightening device markets (8.5% growth seen (HIFU brand for exports) device unit exports

from 2021 to 2029), we believe our long-term growth assumption is justified. were flat, but the new RF device Volnewmer

exports grew c.60% YoY. W77,313

rate the shares EW relative to ourConsensus Price Target Distribution W55,000 W95,000.00 ▪We coverage. We believe medical beauty device MS PT

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates makers need to launch new products every

three to four years to sustain good growth,

but note it is difficult to predict future

product launches or successes. Also, margin

RISK REWARD CHART will likely decrease due to the acquisition of

MedSystems (a distributor in Brazil) in

March 2026.

KRW

W98,000W98,000(+110.98%)W98,000(+110.98%)(+110.98%)

Consensus Rating Distribution

95% Overweight

5% Equal-weight

75000 0% Underweight

MS Rating

W55,000W55,000(+18.41%)W55,000(+18.41%)(+18.41%)

50000 W46,450W46,450W46,450 Source: Refinitiv, Morgan Stanley Research

25000 Risk Reward Themes

W31,000W31,000(-33.26%)W31,000(-33.26%)(-33.26%)

Contrarian: Negative

View descriptions of Risk Rewards Themes here